International
Credit Union Day is this Thursday, Oct. 20. It’s a great time for all of us
to celebrate the credit union difference and the unique experience we provide
our members. I know many of you will be holding your own celebrations for staff
and members alike at your branches.

The
International Credit Union Day of celebration has been around since 1948.
Imagine what that first celebration day must have been like 63 years ago.
Members probably drove up to their credit unions in their Buick Roadmasters,
Chevy Fleetmasters, or Ford Super Deluxe. Most of the members that stopped by
that day were from factories, local units of governments, or schools. Every
Christmas when I watch “It’s a Wonder Life” staring Jimmy Stuart, I think of
what it must have been like running a credit union in this bygone era.

Today
our celebrations will include websites, Twitter, and Facebook. We have come a
long way from our meager beginnings in a cigar box on that factory floor.
However, our not-for-profit member-owner philosophy of “People Helping People”
lives on and still provides a beacon of hope for over 90 million Americans who
otherwise might not have access to affordable financial services.

The
past two weeks have certainly shown us what can happen when financial institutions
customer needs are not met. Credit unions are getting unbelievable exposure
right now. CUNA estimates that more than 120 media outlets have written stories
about angry bank customers looking to move their money. We’ve heard from some
credit unions that they have shifted the focus of their marketing to take
advantage of this opportunity. The Statewide Image Campaign hit the air at the
exact right time to help spur some of these customers to call their local
credit unions and inquire about moving their money.

This
leads me back to Thursday and International Credit Union Day. While many staff
and members will enjoy the celebration, I’m sure there will be new faces
walking into all of your branches. Spurred just enough by the new bank fees,
that they will be “test driving” the local credit union. I encourage all of you
to take part in International Credit Union Day. CUNA has many resources
available to get you started. There are web banners for your
website, printable coloring pages for kids, as well as many other ideas. One
great idea is to tie in the celebration with Halloween to offer members a safe
Halloween alternative.

We
all work in the credit union model because we love what we offer our members.
When they walk through the door, they feel it. As we celebrate our heritage
this week, remember that many new potential members will be stopping by. This
could be as important as any International Credit Union Day celebration that
you have ever put on.

Media Loving Credit UnionsCUNA estimates that more than 120 media outlets have produced stories about angry bank customers looking to move their money to credit unions. CUNA President/CEO Bill Cheney was a guest on CNBC's Squawk Box, while many local outlets in Miami, Huntsville, Tampa, Dothan and Tallahassee have talked to local credit unions. You can read and see the stories in the LSCU Press Room.

LSCU wins two CUNA Pro and Blockbuster Awards
The LSCU was one of only four leagues to win more than one CUNA Pro and Blockbuster award. Click here to read more.

CUNA Regulatory Report
Take a look at this week's CUNA Regulatory Report which highlights the CFPB's release of the newSupervision and Examination Manual, the proposed plan to improve financial accounting for non-public entities, andBank
Secrecy Act Advisory Group meeting. Click here to read the full report.

NCUA Annual ReportThe National Credit Union Administration recently released its annual report with the title "Resilience and the Road Ahead," highlighting the progress of credit unions in the last year. Read the report by clicking here.
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Governmental Affairs News

This week in Alabama politics: Special session unlikely, contenders set for Dist. 45 House seat

Just
a week ago, legislative leaders from Jefferson County and some of Alabama’s
highest elected officials were holding out optimistic hope that an agreement
would be made, and a special legislative session called to deal with the Jefferson
County sewer debt issue. However, those leaders and Gov. Robert Bentley are
much less optimistic now, even saying that an agreement is not going to happen
any time soon. There is still time to come up with a viable option for
Jefferson County that will not include declaring bankruptcy, but unless
significant progress is made, the two sides are miles apart.

Special
Election Results for House District 45On
Tuesday, Oct. 11, the Republican run-off election was held to see who will face Paige Parnell (D) in the special election to replace Rep. Owen
Drake (R-Leeds) who passed away earlier this year. Dickie Drake (R), the late Owen Drake’s
brother, defeated Irondale mayor Tommy Joe Alexander (R) 53 percent to 47
percent.

The general election between Paige Parnell and Dickie
Drake will be held on Tuesday, Nov. 29, 2011.

With just two-and-a-half months left until session,
the Legislature will focus mainly on redistricting issues so that the
legislative and congressional maps will be ready for approval early in the 2012
session. The LSCU Governmental Affairs team continues to meet with legislative
leadership to help move credit union priority issues. Remaining committee weeks include: Oct. 17, Oct. 31, Nov. 14, and Dec. 5. The 2012 Legislative
Session begins on Jan. 10 and is scheduled to run through March 9.

Grassroots
ActivityAs the
2012 Legislative Session moves closer, it remains important for grassroots
advocates to do their part in helping the credit union movement go forward.
Planning Chapter Legislative Nights, in-district meetings with your
legislators, emails, letters, or phone calls all make a difference. The
Governmental Affairs team is here to help you plan all grassroots activities,
and any questions should be directed to LSCU Grassroots and Political Action
Coordinator Andy Gonzalez at 866.231.0545,
ext. 1010.

Florida
Political News:

Florida
Budget Woes Will ContinueEarlier
this year, Florida’s economists predicted that there would be a slight budget
surplus in 2011, a change from previous years where lawmakers were faced with
filling the holes of a multi-billion dollar deficit in order to balance the
budget. Last week, the economists met, and it appears no such surplus will
exist. They remain “cautiously hopeful” that Florida will avoid a second
recession, yet a $1.3 billion budget deficit is expected. While there is still
work to be done in order to reach that balanced budget, as required by the constitution,
it is clear progress is being made. Last year, lawmakers were faced with a
nearly $4 billion deficit. The deficit means that there will be at least $1.3
billion less to spend this year than there was for the 2011-12 budget when the
Legislature appropriated $69 billion.

Vegas
Baby? No, It’s Florida!Florida
continues to look at ways to plug the budget holes and several lawmakers
believe bringing full-scale, Vegas-style gaming to Florida is the way to do it.
However, if Florida is going to be home to Vegas-style casinos, it has also needs Vegas-style gaming regulations, according to the authors of a massive
bill to bring resort casinos to South Florida. That includes creation of a
state gaming commission and a rule that casino operators give the state access
to almost everything – including accounts at financial institutions, marital
records, safe deposit boxes, computers, and even their homes. Click here for the complete Florida Politics Week in Review.

If you have any questions on any of the
legislative issues mentioned above contact LSCU Director, Legislative
Affairs Jared Ross at 866.231.0545, ext.1012.
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News from the Hill: Overview of House subcommittee hearing on MBL

House subcommittee
holds hearing on MBL
Last week, the House Financial Services Committee Subcommittee on Financial
Institutions and Consumer Credit held a hearing on the member business lending
bill, H.R.
1418, the Small Business Lending Enhancement Act.

NCUA
Chairman Debbie Matz testified on the first panel, endorsed the legislation and
explained how the bill could enhance credit union safety and soundness and help
small businesses. Chairman Matz handled many questions regarding credit
union stability, loan demand, and the ability to maintain the safety and
soundness of credit unions while expanding their business lending portfolios.
Chairman Capito (R-WV) questioned Matz on whether credit unions engaged in
business lending were turning down loans as a result of the cap and what would
be an appropriate cap. Matz suggested there should be no cap and that
credit unions should continue to diversify their lending portfolios to
strengthen safety and soundness while fulfilling the credit union mission to
serve their members.

The
second panel included California’s Coasthills Federal Credit Union President/CEO
Jeff York, who testified on CUNA’s behalf, and witnesses from NAFCU (Gary
Grinnell of Corning CU, Corning, NY), Independent Community Bankers Association,
American Bankers Association, and the Massachusetts Share Insurance
Corporation. The League and CUNA are extraordinarily proud and
appreciative of Mr. York’s performance in front of the subcommittee. Mr.
Grinnell also did an excellent job of addressing these issues.

Jeff
focused on small businesses and the impediments the artificial cap has on business
lending at credit unions. Citing the creation of 140,000 new jobs and $13
billion into local communities, he was steadfast in his messaging on creating American
jobs. Reps. Luetkemeyer (R-MO) and Hinojosa (D-TX) engaged in aggressive
lines of questioning regarding the credit union tax status and competitive
advantage. Jeff vehemently defended the credit union charter and how credit
unions serve their members. Click here to read the complete News from the Hill Update.

For questions about the News from the Hill update, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545, ext. 2137.
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Compliance Corner

League InfoSight highlight: One week left to complete InfoSight User Survey

The current edition of the League InfoSight newsletter covers the final week to complete the 2011 InfoSight User Survey. Have you completed it yet?

More than 300 InfoSight users have shared their opinions by completing the 2011 InfoSight User Survey. Have you? You
still have time to share your thoughts about InfoSight. The InfoSight
User Survey is available online through Oct. 21, 2011.

If
you haven’t done so already, we encourage you to take some to complete
the survey—and help us make InfoSight a more useful resource for you.

To fill out the user survey, visit the latest edition of League InfoSight.

For more helpful reminders and tips, view the League InfoSight newsletter by clicking here. It is a password-protected area. Member credit unions that do not have a password, may click here to sign up for one. An active email account and a password are required. To log in to InfoSight, enter your email and password in the InfoSight login block (see graphic below) located in the upper right of any of the LSCU web pages.

The LSCU Cooperative Initiatives Department will present two
Small Asset Size Credit Union Workshops in February 2012. The first
workshop is scheduled for Feb. 7 and will be held in Tampa, FL at
Suncoast Schools FCU. The second workshop is set for Feb. 9
in Birmingham, AL at APCO Employees Credit Union. The registration fee for
each workshop is only $79.

“The small credit union workshops were very well received in
2011,” said LSCU VP, Cooperative Initiatives Laura Vann. “We will be asking
our small credit unions for feedback and will design workshops that meet their
needs.”
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Attendance is steadily climbing for the LSCU Development Conference, coming up Nov. 1-4 at the Grand Hotel Marriott Resort, Golf Club & Spa in Point Clear, Alabama. Early bird registration was a hit as more and more credit union representatives signed up to attend over the last few weeks. If you haven't registered for the conference, it's not too late!

Former NCUA Director of Public and Congressional Affairs John McKechnie

Filene Research Institute Chief Research Officer George Hofheimer

Education breakout sessions including Strategic Issues related to Growth, Marketing Financial Services, Climbing back from the Financial Crisis, and Financial Literacy training. The Volunteer Achievement Program (VAP) will hold three sessions: CEO and Board Succession planning, Understanding Audit Reports and Asset Liability Management for Directors. For more
information, including speaker and session information, click
here.

The conference kicks off with a golf outing benefiting the LSCU PAC with a charity match to the Children's Miracle Network. There is also two guest off-site tours - Sunrise Sailboat Cruise and a tour of the Bellingrath Gardens and Home with a luncheon.

A number of
group buying events will take place in the upcoming months. LEVERAGE is in the
process of setting up specifications within the RFPs, and will request vendors to
compete against one another in a live bidding environment during the upcoming
months for the following commodities:

Commodity
credit union specifications due date:

Armored
Car Services - 10/18/11

Security
Services - 11/11/11

For each
commodity listed above, at least one credit union, and in some cases several
credit unions, have already elected to participate in the process. This
includes the collection of due diligence from all competing vendors, as well as
strategies that encourage vendors to reduce their pricing in a competitive
environment.

There is no
long-term contract commitment required to participate in any of these buying
events. Purchasing details do not need to be identical to those of other
participants, only specific to credit union needs, and credit unions remain in
charge of making all decisions throughout every step of the process. Participation
in a collaborative event typically yields much stronger savings results than an
individual credit union making a single purchase.

Also,
due to the rapidly approaching ADA compliance requirements deadline, the first ePurchasing event that we will be conducting for 2012 is for ATM machines, and
the tentative date is Jan. 14. Any credit union wishing to participate in
this collaborative event must submit their requirements and specifications to
their Business Development Consultant by Dec. 10, 2011.

The Central Florida Chapter of Credit Unions held its annual
charity golf tournament at Timacuan Golf & Country Club in Lake Mary on
Friday, September 23, 2011. The
tournament kicked off with the AXIS Golf Ball Drop, one of the most spectacular
golf ball drops of the year. A hot air
balloon flew above the driving range and dropped numbered balls over the hole
below. AXIS Orlando offered a $1,000
prize to be awarded to the person with the winning raffle number that matched
the number on the ball dropped closest to the pin. The $5,650 proceeds from raffle ticket sales are
donated to the Children’s Miracle Network and will be matched for another
$5,650 by Co-Op Financial Services through its Miracle Match program.

Alabama Teachers
Credit Union (ATCU) recently announced the availability of MoneyIsland,
an educational and entertaining online world that helps tweens ages eight to
fourteen in three key financial areas: saving and spending, earning and investing, and using credit wisely. Kids go on adventurous quests to exotic
destinations, while becoming financial gurus along the way. Meanwhile, parents
and teachers have access to an administrator tool where they can track progress
and assist in the learning experience.

Financial
literacy is at an all-time low in the United States, which means many children
are not receiving the knowledge and skills needed for a successful future.
Fortunately, the general public is becoming more aware of the problem. In fact,
research shows that 91 percent of parents are interested in providing a better
financial education for their kids. But parents need a solution that imparts
the right lessons in a way they are not always able to provide. That’s where
ATCU helps with MoneyIsland.

“As an
active member of our community, a big part of our responsibility is helping at
the local level, and educating kids about money-management is a great way to
make an impact,” says Charly Young, head of research and development at ATCU.
“Offering MoneyIsland helps parents and teachers address an important
challenge for the children of our community and instill lifelong financial
literacy lessons."
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